Advantage Marketing Systems, Inc.
Advantage Marketing Systems, Inc. markets a product line consisting of approximately 103 products in three categories; weight management, dietary supplement and personal care products through a network marketing organization in which independent distributors purchase products for resale to retail customers as well as for their own personal use.
AMS follows growth strategy through acquiring other companies with compatible product line. The principle objective of the company’s acquisition strategy is to acquire other network marketing organizations that can be combined with the company’s net work marketing organization, resulting in increased sales volume with minimal additional administrative costs.
We recommend the company to follow its acquisition strategy in order to increase its sales. We also recommend the company to putt more effort in promoting its product line in order to decrease the risk of dependence on AM-300. We also believe that the creation of a research department is a necessity for the company in order to expand its product line and follow consumers preferences changes.
Introduction
The company history
Advantage Marketing Systems, Inc. was founded in 1988 by C.E.O. John Hail after his company T.V.C Marketing completed a five year marketing contract with Pre-Paid.
AMS markets a product line consisting of approximately 100 products in three categories:
· Weight management (8).
· Dietary supplement (28).
· Personal care products (63).
These products are marketed through a network marketing organization where independent distributors purchase products for resale not only for their own personal use, but also retail customers.
Based in Oklahoma ...
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... and products. This will allow the company to increase its product line in order to respond to the change in consumer preferences, and also gain the right of patent.
Projected growth
Based on the implementation of these recommendations, AMS should see its sales grow to reach $100 Million in 2002. Costs will initially increase due to the added research, development, and promotions efforts associated with the new Strategy. The acquisition of Universal Nutrition Corporation will help the company achieve its objective of $100 Million in 2002. We also believe that such kind of acquisitions will also help the company increase its net income. We predict then, that AMS will acquire at least two more companies in the next five years, this will help the company expand it sells to reach $ 180 million in 2004 with an income of $ 13 million dollars. (See Appendix 4&5).
Thus new products/line extensions will be based on Allround brand, each one with a unique target market, delivering different value proposition to the respective customer.
can expand through marketing ideas and ways the company can save money by not stocking up on as
In today’s world even with the economy suffering and individual income declining, the food industry is still up and running. Chain restaurants, mom and pop establishments, and fast food restaurants that are learning to market their products cheaper and more reasonable to the consumer are still going strong in the United States. They are offering healthier meals due to the consumer wanting to become healthier. They have their ups and downs like any business but are learning to give the consumer what they need and desire. That is the way restaurants keep their customer happy, by buying products from company like Sysco, Gordon’s Food Service, (GFS), and other restaurant suppliers. However; Sysco is the number one supplier to restaurants and hospitals, making them the most profitable company in the world (Sysco.com, 2011).
A line extension or a new product line will require additional investment for product development and marketing activities.
In light of an evolving market, faced with new competitors, and after a careful analysis of their current customers, the Vanguard Group (hereinafter referred to as “Vanguard”) realizes it must rethink its entire marketing strategy. However, in order to protect and leverage their competitive advantage, which is their low management fees, and to optimize the loyalty that their customers continuously demonstrate toward their organization, they must now target the most profitable segment for them, and develop the best way to serve and delight these customers.
We need to have a range of supplier who can supply us with a range of different products with the most up to date technology this would attract more consumers.
Therefore, the organization should take a strategic growth-oriented and reverse type combine. On the one hand, the use of outsourcing and vendor competition to reduce costs in order to compensate for management and manufacturing inefficiencies, pay attention to controlling costs; On the other hand, combined with the advantages of their own technology, innovation, branding and marketing and other aspects of the product 's high school three grades are low pile of competitive products, consumer electronics growth to seize the opportunity to obtain efficient growth performance, and further expand market
On the Ansoff matrix below is shown what growth strategies for new and existing products and markets can be used from the company.
A company must identify its strengths and weaknesses in order to develop growth. Downsizing products is more important than developing new products. A company must be able to identify where there weak markets are at. Times change and so do products. The products that are less profitable or simply aged are the ones that must be downsized in order to make way for a different, more innovative market. When developing growth strategies a company must use the product/market expansion grid. First the company has to figure out whether they can have better market penetration, second they must consider looking for market possibilities for current products. Third they must develop their products into innovative products that people can’t live without having. Lastly they need to be diverse with their company, therefore expanding and including different features to the company could draw more attention from different
Competitive advantage is the advantage for the competitors and gained by the offerings from the consumers that have the greater value either by the low prices of the products and by providing the benefits and services to the consumers that denotes the high price. It is a set of the innovative and different features of the company and the products and services sale to the consumers so that company can achieve the targets what they have decided and it is the betterment for the enterprise in the competitive market (Porter, 2011). There are three determinants which can be used in the competitive advantage that what the company produce for their consumers, their target market that what they have to achieved and the competition from the other entity
Today, advances in technology and design are providing many opportunities for new and existing businesses to re-invent themselves and their marketing strategies.
Marketing is very important to the success of a business. Before people can buy a product or service they have to know about it. However, marketing entails more than just letting people know what your company has to offer. Throughout this paper, I will define marketing, offering my personal definition as well as more formal definitions from other sources. Furthermore, I will explain to the reader the importance of marketing to organizational success giving real world examples in support of this explanation. The field of marketing can include many things. I believe, however, the most important thing which it should include is communication with customers as to the value and benefits of using that particular company's products and services. It should help to establish the business's niche in the industry and distinguish it from other such businesses.
Could this force the company to continuous innovate to prevent the products from entering a mature market? You have to give the customers reason to upgrade. I think that is why Apple has been so successful – by releasing an updated proprietary product every year (iPhone and iPod). This strategy has allowed them to stay ahead of their competitors, forcing the competitors to chase them and also continuously bring new products to the...
Motive: To have a fresh and young look and to get rid of any unwanted